Firms in Japan often employ both high operating and financial leverage because of the use

of modern technology and close borrower$-$lender relationships. Assume the Mitaka

Company has a sales volume of $130,000$ units at a price of $$30$ per unit; variable costs

are $$10$ per unit and fixed costs are $$1,850,000.$ Interest expense is $$405,000.$ What is

the degree of combined leverage for this Japanese firm?